Tarrant Appraisal District changes could lead to school budget cuts, FWISD warns
Officials in the Fort Worth Independent School District say recent policy changes by the Tarrant Appraisal District could lead to school budget cuts.
Last month, the appraisal district’s board voted to change the county’s process for property valuations. Under the new system, residential properties will be appraised every other year instead of annually. The board also approved a freeze on appraisals for 2025.
During a Fort Worth ISD school board meeting Tuesday, Carmen Arrieta-Candelaria, the district’s chief financial officer, told the board that the change would mean that school districts would see stagnant revenue for the next three years, because the two-year cycle of appraisals wouldn’t begin until 2026. Meanwhile, she said, inflation continues to push operating costs upward.
The board approved a pair of resolutions at Tuesday’s meeting, the first opposing the TAD’s reappraisal plan, and the second opposing its 2025 budget. Both resolutions passed by a 7-2 vote, with board members Kevin Lynch and Michael Ryan voting against each proposal.
TAD appraisal change complicates school budgets
Officials in school districts across the county have expressed concern, saying the changes could make it harder for them to meet their bond obligations. Districts sell bonds to fund certain expenses like new school buildings, renovation projects and buses. They use revenue from property tax increases or extensions — approved by voters as a part of the bond issue proposal — to pay off debt from those projects.
When school districts bring a bond proposal to voters, they outline estimates for how much of a change property owners would see on their property tax bills. But those estimates are based on property value growth projections. District officials say the shift to appraisals every other year keeps property values artificially low, meaning districts’ projections would be invalid. Officials in several Tarrant County districts told the Star-Telegram last month that they may have to raise tax rates to keep up with their bond payments and other operating expenses.
The change isn’t the only issue putting financial pressure on school districts. State lawmakers haven’t increased school districts’ per-pupil funding allotment since 2019, and most districts are struggling to keep up with rising costs. During last year’s legislative session, proposals to send some of the state’s $33 billion budget surplus to school districts got tangled up in the debate over school vouchers, and ultimately went nowhere.
Camille Rodriguez, the board’s president, said she was frustrated that inaction in Austin, combined with TAD’s decision, is leaving school districts in a difficult financial position. She questioned how the district can be expected to continue to educate students with rising costs and no new revenue for three years.
Arrieta-Candelaria pointed out that it’s possible state lawmakers will raise the state’s per-pupil allotment for schools when they return to Austin next year. But barring that, she said, the district will likely have to cut its budget to offset rising costs.
Rodriguez said she’s concerned about what that prospect would mean for students, and angry with state and county leaders for putting school districts in this position.
“In the end, it’s hurting our students’ education,” Rodriguez said. “We cannot continue to cut and not affect the classroom.”
This story was originally published August 20, 2024 at 9:22 PM.
